HomeMy WebLinkAboutCouncil Presentation 11/01/2022 - Draft Impact Fees Public HearingImpact Fee Program Update: Streets and Parks
Fausto Burruel, PE
Public Works Director
November 1, 2022
Background on Impact Fees
•Authorized under ARS §9-463.05
•Can only be used (and credits given) for new improvements, not maintenance
•Can NOT be used to improve existing deficiencies –only build equivalent level of service
•Must be for a proportionate share
•Must use current land use assumptions and infrastructure needs for a 10-year cycle
•Land use assumptions and infrastructure improvement plans shall be updated at least every five years
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Streets Impact Fee Calculations
Impact Fee Calculations
1.Determine existing level of service and users of
infrastructure
2.Calculate EDU relationships
3.Forecast growth in the next 10 years
4.Determine infrastructure needed to serve the
future growth
5.Determine portion of infrastructure attributable
to the growth = raw cost per EDU
6.Assign credits for concurrent revenues (if
applicable)4
Land Use Assumptions -2022
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•2017 Final Report
•6,973 new residential units
•17,103 new population
•341 acres of
commercial/industrial/office
•4,750 new jobs
•2022 Final Report
•13,942 new residential units (+99.9%)
•33,309 new population (+94.8%)
•439 acres of
commercial/industrial/office (+28.7%)
•8,584 new jobs (+80.7%)
10-year population and employment forecast
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Streets Fee
Service Areas
Boundaries set by:
1.Geographic
features (I-10, CAP,
Santa Cruz River)
2.Travel patterns
Projected Transportation Projects -Northwest
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Road Project Project Type
Total
Improvement
Costs
Cost of
Vehicular
Improv (80%)
Cost of
bike/ped
improv
(20%)
Cost Attributable
to Develoment
Service Area
Total
Marana Main Street Sandario Rd Grier Rd New 3,255,000$ 3,255,000$
Marana Main Street Tangerine
Farms Rd Sandario Rd Legacy 873,000$
Tangerine Farms Road I-10 (Tangerine
TI)Clark Farms Legacy
Clark Farms Riccati Dr Despain Dr Legacy
Tangerine Farms Road Clark Farms I-10 (Marana
TI)New 15,977,000$ 7,484,400$
Marana Road Interchange,
Phase 1 N/A N/A Interchange
Reconstruct 6,753,000$ 6,753,000$
Clark Farms Despain Dr Lon Adams Rd New 4,520,000$ 3,616,000$ 904,000$ 3,365,622$
Clark Farms Lon Adams Rd Tangerine
Farms Rd New 25,313,000$ 11,774,700$
Adonis Road Grier Rd Tangerine Rd New 20,601,000$ 16,480,800$ 4,120,200$ 14,465,963$
Tangerine Road Interchange N/A N/A Interchange
Reconstruct 4,500,000$ 4,500,000$
55,490,082$
Limits
Northwest3,018,397$
Projected Transportation Projects -Northeast
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Road Project Project Type
Total
Improvement
Costs
Cost of
Vehicular
Improv (80%)
Cost of
bike/ped
improv
(20%)
Cost Attributable
to Develoment
Service Area
Total
Tangerine Road, Phase 1 Dove
Mountain Blvd Town Limits Completed
Capacity 6,189,000$ 4,951,200$ 1,237,800$ 1,896,029$
Tangerine Road, Phase 2 I-10 (Tangerine
TI)
Dove
Mountain Blvd Improvement 42,537,000$ 34,029,600$ 8,507,400$ 13,936,211$
Twin Peaks Road Lambert Ln Tangerine Rd Completed
Capacity 3,642,259$
Moore Road Camino De
Oeste Thornydale Rd Completed
Capacity 291,788$
Cayton Road Dove
Mountain Blvd Thornydale Rd New 6,630,000$ 6,630,000$
Tangerine Road Interchange N/A N/A Interchange
Reconstruct 1,500,000$ 1,500,000$
27,896,288$
Limits
Northeast
Projected Transportation Projects -South
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Road Project Project Type
Total
Improvement
Costs
Cost of
Vehicular
Improv (80%)
Cost of
bike/ped
improv
(20%)
Cost Attributable
to Develoment
Service Area
Total
Twin Peaks Interchange N/A N/A Legacy
Twin Peaks Road I-10 Lambert Ln Legacy
Twin Peaks
Road/Rattlesnake Pass
Saguaro
Highlands Dr Silverbell Rd Expansion 18,001,838$ 14,401,470$ 3,600,368$ 7,506,111$
Cortaro Road I-10 Camino de
Oeste
Completed
Capacity 8,134,735$ 6,507,788$ 1,626,947$ 2,319,081$
Silverbell Road Ina Rd Cortaro Rd Completed
Capacity 21,068,682$ 16,854,946$ 4,213,736$ 8,023,017$
Ina Road I-10 Silverbell Rd Completed
Capacity 9,000,000$ 7,200,000$ 1,800,000$ 3,006,062$
Silverbell Road Ina Rd Sunset Rd Expansion 8,013,159$ 6,410,527$ 1,602,632$ 2,625,316$
27,237,473$
Limits
South3,757,886$
Summary of Infrastructure Costs
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Service Area Projects Population
Growth
Development’s
Proportionate
Share ($M)
Northwest 10 15,190 $55.5
Northeast 6 11,718 $27.9
South 7 6,506 $27.2
TOTAL 23 33,414 $110.6
Final Fee Process
1.The Infrastructure Improvement Plan (IIP) determines what
infrastructure is required due to projected growth, but
infrastructure provided likely yields more capacity than what
is needed.
2.The Fee study determines the proportional cost per EDU. This
sets the Raw Impact Fee.
3.The Fee study must also take into account other revenues
that the Town receives and credit them against the Raw
Impact Fee. This creates the Base Impact Fee which is what
is published as the “Impact Fee”.
4.Should a developer build infrastructure that is part of the
original IIP, the cost of that infrastructure is also credited
against the Base Impact Fee.
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Construction Sales Tax Credit –NE Area Streets Example
1.The Town charges a 4% construction sales tax and normally a 2% retail sales tax. State law requires the Town to credit the difference against impact fees.
2.The State formula for construction sales tax assumes 65% of a construction charge is for materials and 35% is for labor. The Tax only applies to materials.
3.The Town uses the same International Code Council cost per square foot table used in building permit fee valuation to also determine impact fee valuation.
State Formula
(65% x 10.1%)/(1+(65% x 10.1%)) x (4%/10.1%) x ((4%-2%)/4%) = 1.2199%
NE Area Retail Example, ICC cost per sf = $137.88, raw impact fee = $7,393 per
1,000sf
$137.88/sf x 1000sf x 1.2199% = $1,683 ($1,583 –Streets, $100 –Parks) reduction
from raw fee $7,393 -$1,583 = $5,810 per 1,000sf base fee
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Summary of Streets Facilities Fees
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Parks Impact Fee Calculations
Approved Infrastructure Improvement Plan Parks
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Summary of Base Park Impact Fees
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Proposed Base Impact Fees
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Single Family Residential 2017 Study/Current 2022 Proposed
Northwest Streets $3,719 $2,206
Northeast Streets $4,291 $4,739
South Streets $4,327 $4,759
Parks $2,461 $2,530
Questions/Discussion
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Summary of Timeline
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5/13/2022 Publication of Draft LUA and IIP’s
6/23/2022 Stakeholder Outreach Meeting
8/3/2022 Public Hearing for LUA and IIP’s
9/20/2022 Council Action on LUA and IIP’s
9/23/2022 Notice of Intent to Implement Impact Fees
11/1/2022 Public Hearing for Impact Fees
12/6/2022 Council Action for Impact Fees
2/20/2023 Impact Fees Effective (min 75 days from council action)